The history of Augustów is long and decidedly eventful. Until the end of the 13th century, these lands had been inhabited by the tribe of Yotvingians, who were eventually defeated by the Teutonic Order in 1283. After the fall of Yotvingia, the region became deserted.
The town of Augustów was founded by King Sigismund II Augustus who on May 17th, 1557, issued a royal charter establishing the town under Magdeburg Law. Augustów’s name and coat-of-arms (entwined initials S.A. – Sigismundus Augustus – and PR – Poloniae Rex, topped by Grand Ducal coronet) originate from the town’s royal founder. According to the legend, Augustów was founded to commemorate King Sigismund Augustus’ first tryst with Barbara Radziwiłł.
Settlement in the region began to grow again in the early 16th century with the influx of craftsmen, in particular bakers, butchers, cobblers, blacksmiths and wheelwrights. Augustów’s rapid growth was interrupted by the wars with the Swedes and outbursts of bubonic plague.
Growth and prosperity returned to Augustów in the 1820s and 1830s with the construction of the Augustów Canal. The Canal’s purpose was to provide a convenient water passage between the Kingdom of Poland and the Baltic Sea, bypassing the Prussian waterways and the need to pay customs.
After World War I, Augustów became a popular tourist destination. New hotels and recreation centres, such as Dom Turysty (Tourist House, currently named Hetman) and Yacht Club Rzeczypospolitej (Republic Yacht Club, later renamed to Military Holiday Resort) hosted the political and military elites of the 2nd Polish Republic, such as President Ignacy Mościcki, Minister of Foreign Affairs Józef Beck, and Marshal of Poland Edward Rydz-Śmigły.
In October 1993, Augustów was granted the status of a health resort due to its unique climate and peloid deposits in the Augustów Forest.